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Way more than a 'few' people would have this hat because it is something that anyone can achieve and it is not a limited time item therefore having it does make anyone seem more important than anyone else.
Although, it'd be fun to have it as a sign of dominance over the noobs who suck and can't get one.
Sounds like an excuse for having a bad ratio
A lot can change in 5 months and unless you analyzed the spar community within that time frame you have no basis to state that it did not die down, whereas Thallen and the numerous other spar people in this thread have been seeing the community on a daily basis and can easily tell whether it is dying or not.
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I'm an active sparrer myself, and I see no need for this. Especially since the guy who is proposing the idea is just doing it to have more hats, which, is completely fine with me, but he should just say he's just proposing the hats to be brought back because he wants more hats.
I personally don't think sparring is dying, but that's just my opinion. I honestly don't see a need for this.